Giving away the game? The impact of the disclosure effect on the patenting decision
Diana Heger and
Alexandra Zaby ()
No 12-010, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
This article explores the propensity to patent in the light of the disclosure effect. Unlike earlier approaches concerned with the patenting decision, we take into account that a disclosure effect may decrease the merits of patenting by facilitating inventing around the patent for competitors. In our theoretical model, we find that the disclosure effect - contingent on the competitive environment of the inventor - possibly has substantial negative effects on the propensity to patent. An empirical investigation of the theoretical results finds support for the proposed effects.
Keywords: Patenting decision; secrecy; disclosure requirement; patent breadth; horizontal product differentiation; circular city (search for similar items in EconPapers)
JEL-codes: L13 L24 O34 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:12010
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